# Ericsson American (ERIC) fundamentals

Data as of 2026-09-08. NASDAQ, United States. Sector: Technology / Communications Equipment. Price $10.10, market value $33.0 billion.

## Valuation
- **P/E (trailing): 13.1×** (5-yr avg 192.7×, 3-yr avg 384.3×). Ericsson American trades at 13.1× trailing earnings, well below its own five-year average of 192.7×: cheap by its own standards. The Technology median in the September 2026 study was 32.1×. Forward P/E is 16.2×, higher than trailing, so analysts expect earnings to fall.
- **PEG: 0.00**. A PEG of 0.00 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 1.4×**. Each dollar of revenue is priced at 1.4×.
- **Price / book: 0.3×**. The shares trade below book value, which can signal a bargain or a balance sheet the market doubts.
- **EV / EBITDA: 7.1×**. Enterprise value is 7.1× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 9.4%** (5-yr avg 112.1%). Free cash flow equals 9.4% of the market value, below its five-year average of 112.1%, so the shares are pricier on cash than usual. Above 5% is generally attractive.
- **Earnings yield: 7.6%**. The inverse of the P/E: 7.6% of the price is earned each year.

## Profitability
- **Gross margin: 47.0%**. Ericsson American keeps 47.0% of revenue after the direct cost of what it sells.
- **Operating margin: 11.4%**. 11.4% of revenue is left after running the business.
- **Net margin: 12.1%**. 12.1% of each dollar of sales reaches the bottom line.
- **Return on equity: 26.0%**. 26.0% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 19.7%**. Return on all capital, debt included, is 19.7%: comfortably above what that capital costs.
- **Return on assets: 8.8%**. Each dollar of assets produces 8.8% of profit.

## Growth
- **Revenue growth (1 yr): -4.5%** (3-yr -4.5%/yr, 5-yr 0.4%/yr). Revenue fell 4.5% over the last year, against 0.4% a year compounded over five years: growth is slowing.
- **Free-cash-flow growth (3 yr): 4.7%/yr**. Free cash flow has compounded at 4.7% a year over three years, lagging earnings: check whether profits are turning into cash.

## Financial health
- **Debt to equity: 0.30**. Debt is 0.30 times equity: a conservative balance sheet.
- **Net debt / EBITDA: net cash**. Ericsson American holds more cash than debt.
- **Interest coverage: 11.5×**. Operating profit covers interest 11.5× over, a safe margin.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 3.16%** ($0.32 per share, trailing). Ericsson American yields 3.16%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 33%**. 33% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 6**. 6 straight years of increases.
- **Dividend growth (5 yr): 11.3%/yr** (1-yr 6.5%). The dividend has compounded at 11.3% a year over five years, doubling roughly every 6 years at that pace.

## Analyst view
- **Analyst consensus: underperform** (6 analysts). 6 analysts cover Ericsson American; the consensus is underperform, with an average price target of $9.67 (-4% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 31.5%** (YTD 6.2%, 3-mo -19.6%). The shares are up 31.5% over twelve months including dividends.
- **From 52-week high: -26.7%** (28.3% above the low). Trading 27% below its 52-week high.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 48**. An RSI of 48 is neutral.
- **Beta (1 yr): 0.88** (volatility 39%). Beta of 0.88 against the S&P 500: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=ERIC · Page: https://foliofundamentals.com/stocks/eric

Not investment advice.